On Thursday, Vanda (NASDAQ:VNDA) Pharmaceuticals Inc. (NASDAQ:VNDA) received an updated stock price target from Cantor Fitzgerald, which increased the target to $13.00 from the previous $11.00. The firm maintained its Overweight rating on the company's stock.
The adjustment comes as the analyst recognized Vanda Pharmaceuticals as a "differentiated Neuro-Innovator with a broadening neuropsych portfolio." The firm's products, including Fanapt and PONVORY, are expected to attract investor interest due to potential increased traction in the market.
The analyst highlighted the company's valuation, noting a discrepancy between Vanda Pharmaceuticals' strong cash balance and its market capitalization. The current cash balance stands at approximately $388 million, while the market cap is slightly lower at $340 million.
Furthermore, the firm pointed to the company's price to projected 2025 revenue multiple, which is valued at 0.9 times, indicating that the stock is undervalued. This figure is used by investors to gauge the company's revenue growth against its current share price.
Vanda Pharmaceuticals' focus on neuropsychiatric and neurological conditions has positioned it uniquely in the pharmaceutical industry. The company's commitment to innovation in this area is expected to continue driving interest and potentially enhance its market value.
In other recent news, Vanda Pharmaceuticals has been in the spotlight with significant developments. The company has rejected multiple acquisition proposals, including those from UK-based Cycle Pharmaceutical and Future Pak, asserting that the offers did not reflect the full value of the company.
In the meantime, Vanda has been focusing on several key developments, such as acquiring full U.S. marketing and clinical development rights for the multiple sclerosis drug PONVORY from a Johnson & Johnson (NYSE:JNJ) subsidiary.
Vanda has also announced the successful results of its Phase III study of tradipitant, a drug designed to prevent motion sickness, and plans to submit a New Drug Application to the FDA later this year. Despite experiencing a 24% decrease in total revenues in Q1, primarily due to generic competitors for its sleep disorder drug HETLIOZ, Vanda did report a net income of $4.1 million.
Furthermore, Cantor Fitzgerald has increased Vanda's price target to $13.00 from the previous $11.00 while maintaining an Overweight rating on the company's stock. The firm recognized Vanda Pharmaceuticals as a "differentiated Neuro-Innovator with a broadening neuropsych portfolio" and highlighted the company's strong cash balance and undervalued stock. These are the recent developments influencing Vanda Pharmaceuticals.
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